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Construction Law/FIDIC Red 1999 payment after Taking Over


Dear Mr. Elliot
FIDIC Red Book 1999 version SC 14.6 paragraph 2 states "..prior to the issuing of the Taking Over the Engineer shall not be bound to issue an IPC in an amount be less than the minimum amount of IPCs stated in the Appendix to Tender". Can we understand this statement to mean that after the issuing of the Taking Over IPCs or payments less than the minimum amount can be issued? In our Contract there has been some additional works, therefore due payments to Contractor during the DNP that may be considered under SC 11.2. In your opinion can the Engineer certify and the Employer may make payments for those or the Final Payment Certificate shall be awaited? Thank you..

Dear Gokham,

I think that you could put in a statement of account and request an IPC, but I would ask the Engineer for his opinion first.  If the amount was less than say 0.5% if the Accepted Contract Sum, then I would deny to certify payment.  The cost of arranging payment would be uneconomic, especially if the work had been done towards the end of the Defects Notification Period.  It is all a matter of relationships and relative costs.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

B Sc(Hons) in Civil Engineering

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